Tokyo Stock Exchange - TSE

AAA

DEFINITION of 'Tokyo Stock Exchange - TSE'

The largest stock exchange in Japan, headquartered in its capital city of Tokyo. The Tokyo Stock Exchange (TSE) was established on May 15, 1878. The exchange has more than 2,200 listed companies, with a combined market capitalization at end-2010 of $3.8 trillion, making it the third-largest in the world by this measure. The exchange is home to the largest and best-known Japanese giants with a global presence, including Toyota, Honda and Mitsubishi.

BREAKING DOWN 'Tokyo Stock Exchange - TSE'

At the peak of the Japanese asset price bubble in December, 1989, when the Nikkei 225 index reached a record high of 38,957, the Tokyo Stock Exchange accounted for a staggering 60% of global stock market capitalization. The TSE's combined market capitalization shrank dramatically over the next two decades, as the Japanese economy struggled with a recessionary environment and the Nikkei plunged in value.


The acronym TSE for the Tokyo Stock Exchange should not be confused with Canada's Toronto Stock Exchange, which is known by the acronym TSX.

RELATED TERMS
  1. Kakaku Yusen

    The system of pricing that is used by the Tokyo Stock Exchange. ...
  2. Nikkei

    Short for Japan's Nikkei 225 Stock Average, the leading and most-respected ...
  3. Japan Inc.

    A nickname for the corporate world of Japan that came about during ...
  4. Bahrain Stock Exchange - BSE

    The stock exchange headquartered in Manama, Bahrain. Bahrain ...
  5. Kaizen

    A philosophy that sees improvement in productivity as a gradual ...
  6. Keiretsu

    A Japanese term describing a loose conglomeration of firms sharing ...
Related Articles
  1. Forex Education

    What Forex Traders Need To Know About The Yen

    The Japanese Yen possesses some unique qualities that traders should know before jumping in.
  2. Forex Education

    Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  3. Bonds & Fixed Income

    Dragons, Samurai Warriors And Sushi On Wall Street

    From samurai to sushi, there's no denying the East Asian influence on investing terminology.
  4. Economics

    Lessons Learned: Comparing The Japanese And U.S. Bubbles

    Find out what the Japanese and U.S. bubbles can tell us about recovering from financial chaos.
  5. Economics

    Tankan Survey Provides Clues To Japanese Economy

    This quarterly survey is crucial for assessing Japan's economic health.
  6. Insurance

    Understanding Japanese Keiretsu

    The structure of major companies in Japan is steeped in tradition and relationships.
  7. Personal Finance

    The Lost Decade: Lessons From Japan's Real Estate Crisis

    Find out what America can learn from Japan's liquidity trap and credit crunch.
  8. Investing Basics

    Explaining Foreign Exchange Risk

    Foreign exchange risk is the chance that an investment’s value will decrease due to changes in currency exchange rates.
  9. Mutual Funds & ETFs

    ETF Analysis: iShares Asia 50

    Read more about BlackRock's iShares Asia 50 Fund, an ETF that follows the four "Asian Tiger'' nations plus China.
  10. Mutual Funds & ETFs

    ETF Analysis: WisdomTree International LargeCp Div

    Learn more about the WisdomTree International LargeCap Dividend fund, an income-based international equities ETF that focuses heavily on the United Kingdom.
RELATED FAQS
  1. What is the definition of "Financial Instruments Business" under the FIEA?

    The Financial Instruments and Exchange Act (FIEA) defines a financial instruments business as any firm with the primary business ... Read Full Answer >>
  2. Is Japan an emerging market economy?

    Japan is not an emerging market economy. Emerging market economies are characterized by low per capita incomes, poor infrastructure ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. What is the difference between a greenfield investment and a regular investment?

    A greenfield investment is a particular type of investment where an international company begins a new operation in a foreign ... Read Full Answer >>
  5. What are the benefits for a company investing in a greenfield investment?

    Advantages of greenfield investments include increased control, the ability to form marketing partnerships and the avoidance ... Read Full Answer >>
  6. Why did China designated certain territories as special administrative regions?

    The primary reason for the People's Republic of China designating two territories as special administrative regions, or SARs, ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Depreciation

    1. A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both ...
  2. Recession

    A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, ...
  3. Bubble Theory

    A school of thought that believes that the prices of assets can temporarily rise far above their true values and that these ...
  4. Stock Market Crash

    A rapid and often unanticipated drop in stock prices. A stock market crash can be the result of major catastrophic events, ...
  5. Financial Crisis

    A situation in which the value of financial institutions or assets drops rapidly. A financial crisis is often associated ...
  6. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!